The process of customer identification or "onboarding" is complex, time-consuming and prone to errors. But times are changing... don't get left behind!
The regulatory framework governing know-your-customer processes is clearly defined. However, the implementation and procedures vary greatly from one institution to the next.
Companies committed to the German Money Laundering Act (GWG) face higher administrative burdens than ever before - especially in the context of customer onboarding and the ongoing verification and updating of customer data. The identification (Who is the customer really?) and verification (Is the customer really who they claim to be?) of new and existing customers is extremely time-consuming.
Today, digital customers expect a fast and smooth onboarding process - regardless of whether they are private or corporate clients. The COVID-19 pandemic has further reinforced this development. Complex and cumbersome KYC processes are a real problem, and are becoming a major competitive drawback for companies lacking digitised solutions.
In addition to regulatory compliance, an increasing focus is placed on the customer experience. Both elements need to be combined so that KYC does not become a showstopper.
The procedural and regulatory effort involved in identification and verification depends on the type of customer to be legitimised. Consequently, a distinction must be made between the following procedures and focus groups:
Advancing digitalisation and changing customer behaviour are increasingly shifting banking transactions towards online services. Electronic signatures and identification enable fast and digital order itineraries without media interruptions as well as efficient banking services around the clock.
In B2B, complex group & corporate interdependencies complicate the process of identification and verification. Manual processes and long lead times are characteristic of the susceptibility to errors - or are they? Technological innovations offer solutions with positive connection to the customer experience.